Dr. David Smith Weighs in on Recent WGA Health Care Negotiations

For the Society of Human Resource Management (SHRM.org), Allen Smith, JD, covers the 2017 Writers Guild of America (WGA) strike aversion. Strike plans were averted when a deal was struck between the WGA and producers in the wee hours of May 2, 2017. The deal includes increased healthcare contributions, high-budget streaming and video-on-demand TV residual increases and – for the first time – residuals for comedy-variety writers in pay TV. The WGA also secured job protection for parental leave.

With healthcare at the forefront of the negotiations, Dr. David M. Smith, Associate Professor of Economics and Associate Provost for Online Programs at the Pepperdine Graziadio School, says: "Health care is a major issue that most employees and organizations are grappling with. Clearly, it's a key part of compensation, and there are inherent trade-offs between overall compensation, wages, and cost-sharing." Dr. Smith also noted, "When you have exceptional talent, it is better to look for ways to achieve common ground, rather than assuming there is an endless supply of a scarce resource."